South Korea emerges as key partner for America’s energy transition

South Korea emerges as key partner for America’s energy transition

Inside Climate News reports:

On June 22, the U.S. The Department of Energy announced that it will grant a $9.2 billion loan to BlueOval SK LLC (BOSK), a joint venture between Ford and SK On, a Korean battery manufacturer. The loan will be used to construct three manufacturing plants in Tennessee and Kentucky. Once operational, the facilities have the potential to displace 455 million gallons of gasoline annually by propelling the shift toward low-carbon transportation.

The loan, dubbed the “biggest government investment in the auto industry” since the 2009 recession, is evidence of the Biden administration’s efforts to strengthen the domestic supply chain for a clean energy transition. As the U.S. tries to kick off its renewable energy and battery manufacturing capabilities, it also needs help from overseas to quickly reach its net zero goals, and South Korea is emerging as a pivotal ally in America’s pursuit of an energy transition.

According to the IRA Manufacturing Investment database compiled by Jack Connes, a policy analyst at Energy Innovation, over a third of the announced investments have been directed toward prominent South Korean companies such as Samsung SDI, LG Energy Solutions, SK Battery and Hanwha Q Cells. At more than $22 billion in total, Korea was a close second to America’s investment in its own companies, comprising 31 percent of all announced investments. [Continue reading…]

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